Probing Channel Balances in Automated Payment Networks
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Solution Overview
Problem
In automated payment channel networks, verifying the balance of cryptocurrency in channels between nodes is challenging due to the pseudonymous and automated nature of third-party nodes, leading to a high failure rate of transactions.
Innovation Solution
A system and method for probing channel balances by transmitting a transfer command through a path involving initial, intervening, and terminal nodes, receiving and verifying proofs of transfer to determine the nominal quantitative value of intervening nodes, thereby estimating the cryptocurrency allocation within the channel.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional verification approaches are used, then the system maintains pseudonymous and automated channel establishment, but transaction verification becomes unreliable and slow
Solution Approach 1:
The system performs preliminary balance probing transactions before actual value transfers to verify channel balances. This advance verification ensures that the channel has sufficient liquidity before committing to a transfer, preventing failed transactions while maintaining the automated nature of the system.
Solution Approach 2:
The system introduces an intermediary verification mechanism that acts as a mediator between the automated channel establishment and the transfer execution. This intermediary layer provides reliable verification of channel balances through probing transactions without requiring manual intervention, thus maintaining automation while improving reliability.
2Extent of automation
If third-party node balance reports are used, then automated channel establishment is maintained, but transaction failure rate increases due to inaccurate balance reports
Solution Approach 1:
The system performs preliminary balance probing transactions before actual value transfers to verify channel balances. This advance verification ensures that the channel has sufficient liquidity before committing to a transfer, preventing failed transactions while maintaining the automated nature of the system.
Solution Approach 2:
The system implements a feedback mechanism where the response to probing transactions provides information about the actual channel balance. This feedback allows the system to verify the accuracy of third-party balance reports and adjust its behavior accordingly, improving reliability while maintaining automation.
Data Source
AI summary
Systems and methods for probing channel balances are disclosed herein. In some embodiments, channel balances may be probed by sending transfer commands and receiving proofs of transfer. In some embodiments, a first proof of transfer may be verified using a second proof of transfer.